Can I get a mortgage if I am at risk of redundancy?

bee101

Hi, my partner and I are looking to buy our first home. I am currently at risk of redundancy in work. We have already been through the consultation period/re-interviews and I have been told I am keeping my job. However, those told they are staying cannot be taken off risk until the one's who are being made redundant have been through their appeals etc which we have been advised could take atleast a month and a half. We have found the perfect home but I am just wondering whether my partner and I can still go ahead with a mortgage even though technically I am still at risk? I have not advised the bank yet of my at risk status as so far they have not asked. Is this something they are likely to ask if we proceed? Or will they just want to confirm that I am in full time employment and that is all?

Thanks

Wh05apk

I think technically you could, however, if the situation changed, then you are under a duty to advise the lender, regardless of what stage you are at, they would then withdraw the offer. if it happened after exchange you would still be committed to buying the property, but without a mortgage in place - could they very tricky, and expensive.

From a personal point of view, do you really want to commit to this with redundancy (however unlikely) hanging over your head?

Jenniefour

A friend has just got her mortgage and in all the nine or so pages of big print conditions she signed prior the the offer one was her obligation to inform them immediately of any change in her circumstances. And if not, if something comes to their attention they can withdraw the offer etc etc.

But I would be more concerned about the point the poster above has made - if you are made redundant will this cause problems if you are unable to get another job in a reasonably short time? Would your partner's income alone be sufficient to secure the mortgage you need?

bee101

Thanks for your posts. I work for the Police and after re-interviews was told I came 7th from top out of an office of 30. They have funding for 16 people and have told us we will get our off risk letters through as soon as the others who have been made redundant have had gone through the final process. So thats why I believe I am safe and wanted to press on with buying our first home. My partner does earn enough to cover the mortgage by himself but I think maybe it is probably best to hold fire until I have my off risk letter through. Fingers crossed the letters come sooner rather than later.
Thanks

whatyadoinsucka

you'd be mad to take out a mortgage whilst in this position, the police force is likely cutting position in nearby counties so you may need a complete career change, or the freedom to move within the UK.

can you imagine you just get the keys to your house, then out of work your are offered a job at the other end of the country

bee101

So are you advising that even after I get my off risk letter I shouldn't be looking to take out a mortgage because I work for the Public sector??

anoneemouse

My guess is that OP has no intention of moving to elsewhere in the country anyway regardless of what happens or doesn't happen to the job.

I certainly wouldn't even take that into account in her position. I would just be working out "Can I afford this mortgage or can't I?" and if my conclusion was that I could do so even if my job vanished, then I would go ahead.

bee101

Hi,
Thanks again for all your comments. anoneemouse is right..I have no intention of moving elsewhere in the country even if I did lose my job (which after being reinterviewed and coming 7th/30 seems highly unlikely). We could still afford the repayments from my partner's salary even if I did get made redundant. The concern I had was just the issue with my 'at risk' status and whether we would still be allowed to proceed while I am at risk.
After reading the posts, I do agree that we need to hold fire for the moment until I get my 'off risk' letter through and then go and have a chat with the mortgage adviser at my bank. I can't imagine that once I have my off risk letter through there should be any issues. The bank has agreed to lend to us knowing full well I work for the Police who (as everyone is undoubtedly aware) currently has major budget issues with jobs going left right and centre.

Thanks again